Why tip the Assistant Chief Housekeeper?

[justfor411]

Here is an interesting thought.

Celebrity has stopped TA's dicounting cruises now and you can only get the same price more or less that Celebrity is charging when shopping around. So it makes sense that X are now making a lot more money on each cruise per pax. So I bet they are going to use that money to pay the staff more.........oh dear I just woke up.

 

Nope... the discounts Celebrity stopped had exactly zero impact on how much Celebrity received for the cruise from the TA. The discounts were done by efficient TAs who found ways to reduce their own commission in order to offer lower prices to the consumer. If you believe Celebrity's rhetoric, their action to stop such discounting was to protect those agents who couldn't or wouldn't adopt modern business practices which might have allowed them the same latitude to offer such discounts. Regardless of whether the guest booked through a discounter or not, Celebrity was receiving the same cut in the end. Of course, it very well may be that Celebrity was hoping more folk would simply use Celebrity's online booking instead of a TA, which of course would net Celebrity a bit more because they'd have no commission to pay at all.

[slomotion]

This is not the case

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Here is an interesting thought.

Celebrity has stopped TA's dicounting cruises now and you can only get the same price more or less that Celebrity is charging when shopping around. So it makes sense that X are now making a lot more money on each cruise per pax. So I bet they are going to use that money to pay the staff more.........oh dear I just woke up.

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The travel agent is typically the one who "ate it" on the discount and hoped to make it up by selling more cruises. It is not that X is making a lot more money on each cruise. The "problem" to the cruise line is that they begin to appear to be the K-Mart of cruise lines if everybody can buy their cruises at a discount.